Gold backing into $1,320 after Friday's correction runs dry
- US Treasury yields skewered Gold prices recently, and the precious metal is struggling to recover.
- Inflation concerns have continued to pick up in the US, and soon rising interest rates will begin taking chunks out of Gold bulls' efforts.
Gold is trading into the new week on a low note, testing back into 1,321.00 in early Monday action.
The precious metal rebounded on Friday after falling steadily as US Treasury yields spiked, with the 10-year Treasury yield climbing over the critical 3% level. Treasuries yields have begun falling back, but Gold remains under pressure in the face of a still-elevated US Dollar. Friday's bullish correction wasn't enough to get the metal back into April's midrange, and a lack of confidence is keeping Gold close to the month's lows.
Gold levels to watch
Gold bulls will be looking to send the precious metal back into the upper end of the range that has defined the action since January, but downward pressure could see the price fall further back into 1,307.00, with further support from the 200-day SMA at the 1,300.00 critical handle, before making a return trip to resistance levels scatter from 1,350.00 to the top of the range at 1,365.00.
Author
Joshua Gibson
FXStreet
Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.
